“We are very pleased with the outcomes”, a spokesperson from FTSE 100 private equity giant Intermediate Capital Group (ICG) said after investor Barry Maloney’s claim failed at the High Court.
The legal spat was linked to an investment into “unicorn” firm Workhuman, for which ICG provided financing and, in turn, was granted direct and indirect equity.
ICG provided Maloney with financing in 2018 to buy a 40 per cent stake in Workhuman through an investment vehicle company, Falcon, giving ICG a seven per cent equity stake.
Maloney is the CEO of Falcon Capital and holds the position of chairman and largest shareholder of Workhuman.
However, ICG separately bought a ten per cent equity stake in Workhuman. This minority stake was a direct investment and did not involve Maloney.
The relationship between the companies soured rapidly, however, after ICG’s move to block the acquisition of a US-based firm, in what Maloney described in court documents as an attempt to “extract maximum value” from Workhuman.
The tech unicorn had to rule out a potential London IPO due to the level of animosity between the firms, a source close to the company told City AM in January 2024.
Maloney claimed that ICG attempted to prevent him from paying off approximately $110.7m of debt and redeeming its equity stake in his holding company.
The ICG-based vehicle applied to bring a counterclaim and seek to arrange the repayments.
The parties went to a trial at the High Court in mid-January for six days, with a judgment issued on Tuesday. Mr Justice Bright concluded that Maloney’s claim failed while ICG’s counterclaim succeeded.
ICG spokesperson noted that [the ruling] fully upholds our position and comprehensively dismisses all of the allegations made against us.”
“We will continue to focus our efforts, on behalf of our investors, on the best interests of WorkHuman,” they added.